Developing Robust Financial Models for Portfolio Monitoring Solutions
Discover how Kroll's Valuation Advisory Services, with it’s Business Modelling proficiency, empowered a sovereign wealth fund client with streamlined portfolio monitoring to effectively oversee newly acquired assets and drive value in these businesses.
The Challenge
A newly established sovereign wealth fund had recently become the owner of a multibillion-dollar portfolio of diverse businesses, spread across multiple industries and having global operations. The fund required the infrastructure to be an effective custodian of these assets and to create value in these businesses. The sovereign wealth fund lacked detailed financial models which were integral to understand, analyze and challenge management’s strategic plans. The client, therefore, engaged Kroll to develop financial models and a consolidated portfolio monitoring solution which would enable the client to give the board latest insights on overall portfolio and sector performance and drive forward its economic vision for the EMEA region.
Kroll Solution
Kroll designed a robust model development process to scope, specify, build and hand over the financial models. Our work involved creating over 30 financial models and ensuring that each of them were consistent in modelling best practice and build standards and had the associated specific documentation and user guides. Our Power BI portfolio monitoring solution consolidated the model forecasts into sectors and provided aggregate portfolio-level views. We also delivered training to the client on how to use the models and leverage Power BI to help the client better understand the ongoing maintenance and development process for the models.
Kroll's comprehensive solutions helped the client increase performance efficiency for creating value in its portfolio of assets.
The Impact
The financial models and Power BI monitoring solution developed by Kroll were critical to the client’s success for:
- Enhancing the client’s understanding of value drivers in the underlying businesses
- Developing the client’s capability to challenge management on its projections for delivering stronger financial returns
- Increasing efficiency to perform independent analysis and automatically update the projections in the portfolio monitoring solution
- Equipping the client with the tools to simulate M&A activity and other strategic initiatives which stressed the portfolio for macroeconomic shocks
Harnessing our best-in-class team of dedicated financial modelling experts, Kroll was able to deliver a timely, strategic and extensive solution for our client to successfully manage risks and navigate a wide range of sectors confidently.
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Valuation
Valuation of businesses, assets and alternative investments for financial reporting, tax and other purposes.
Business Modelling and Analytics
Our Business Modelling and Analytics team supports clients’ strategic decisions by providing robust quantitative solutions and delivering actionable insight from data.